PORTO ALEGRE, Brazil, May 31, 2012 /PRNewswire/ -- SLC Agricola, one of Brazil's largest landowners and one of the leading producers of cotton, soybean and corn in terms of planted area, announced today the sale of 49.4% of its subsidiary SLC Landco, which was created in 2010 for the purpose of raising capital to finance the Company's expansion, monetizing approximately 20% of its land portfolio.
The LandCo Project was announced to the market at the beginning of 2010, but was postponed due to an order from the Solicitor-General's Office limiting the acquisition of land by foreigners in Brazil. According to the Company, after the main doubts regarding the legislation were resolved, negotiations resumed, as the investors showed substantial interest in the vehicle. "As our Company is controlled by Brazilians and we are the majority shareholders in SLC Landco, we are in compliance with the current legislation," declared Arlindo Moura, SLC Agricola's CEO.
SLC Landco's new partner is the British-owned Valiance Asset Management fund, a specialized asset management firm with offices in London and Guernsey. Since its inception, it has built a distinct investment portfolio, managing funds for a wide range of clients, including family offices, banks, foundations, pension funds and other institutional investors seeking reliable and transparent access to a number of investment opportunities, including real assets.
SLC Agricola believes the partnership to be exceptionally beneficial, as it combines the competence of one of the most efficient land operators in Latin America with Valiance's capacity to inject capital into one of the Company's most important activities: land transformation.
"Land is a scarce asset and is becoming more and more valuable as the population increases and demand for food moves up", explained Moura. "We want to contribute to the global grain supply by using the best agricultural techniques, always respecting the environment and in compliance with the law. We currently own over 100,000 hectares of legal reserve, an area as big as the city of Rio de Janeiro," he added.
For the Chairman of SLC Agricola's Board, Eduardo Logemann, the deal with Valiance will bring excellent results. "We are very pleased with this partnership, since it has given us the capital we needed to reach our goal of planting 400,000 hectares by 2015/2016, showing the market the true value of our land portfolio," he affirmed.
Jan Pensaert, Valiance's CEO, believes that "for many years, our clients have been increasing their investments in agricultural land as an asset that combines protection against inflation with an excellent upside, particularly when the financial markets are riddled with uncertainty. Our studies identified Brazil as an agricultural superpower and the ideal place to invest in land, given its sustainable and responsible farming, exceptionally favorable climate and topography, and economic stability. We feel privileged to have established strong relations with SLC Agricola and for having entered into a partnership with this renowned worldwide land operator.
For more information please contact:
SLC Agricola Media Relations
Journalist responsible: Debora Braga
debora.braga@gruposlc.com.br
+55 51 3230-7708
SOURCE SLC Agricola
